The Indian Navy's ongoing negotiations with Dassault Aviation for the acquisition of Rafale Marine fighter jets have sparked concerns over a potential price hike. Reports suggest that the French defence manufacturer may be offering the aircraft at double the price paid by the Indian Air Force (IAF) in 2016.
The IAF's purchase of 36 Rafale jets in 2016 was at a reported base price of $84 million per aircraft, with the total contract value reaching $9.4 billion due to additional costs like spares, simulators, and training. Now, the Indian Navy's potential deal for 26 Rafale Marine jets is estimated at $7.8 billion, raising alarms about a significant price increase.
Official negotiations between India and France commenced this week, with both parties expressing optimism about finalizing the agreement by the end of the current financial year. The Indian Navy intends to operate these jets from its aircraft carriers, INS Vikrant and INS Vikramaditya, further enhancing its maritime capabilities.
While the reported price difference has raised eyebrows, experts suggest that India could save on ancillary costs. The IAF already operates Rafale jets, and by adopting a similar model as France, where the navy and air force share maintenance and storage facilities, India could potentially reduce the overall contract value.
The base price for the Indian Navy's Rafale Marine jets is estimated at $300 million per aircraft, a stark contrast to the IAF's 2016 deal. However, experts argue that with shared resources and infrastructure, this cost could be brought down to around $115 million per jet. The final outcome of the negotiations and the actual contract value will have significant implications for India's defence budget and its naval air power.
